Apple's Ternus takes helm, teases foldable iPhone at September 9 event

Apple's new CEO John Ternus issued his first internal memo on day one, revealing future product plans and calling the September 9 iPhone launch event "extraordinary" — an early test of whether the hardware engineer can sustain the company's growth trajectory.

"I think John Ternus can be a combination of both," Francisco Jeronimo, vice president for data and analytics at IDC, said, referring to Steve Jobs' innovation legacy and Tim Cook's operational discipline.

Ternus, 51, assumed the CEO role on September 1 after 15 years under Cook, who remains executive chairman. A 25-year Apple veteran who has overseen hardware engineering since 2021 — the division responsible for iPhone, iPad, and Mac, which generate roughly 80 percent of revenue — Ternus will make his public debut at the September 9 "Surprise and Shine" event, where analysts expect the first foldable iPhone and an AI-powered Siri. The transition was announced in April and orchestrated over several months, a contrast to the abrupt handoff when Cook succeeded Jobs in 2011.

The stakes are high. Apple's market capitalization grew from roughly $350 billion to nearly $4 trillion under Cook, and the company sold more than 3.1 billion iPhones during his tenure. Ternus inherits a company that has lagged rivals in artificial intelligence, and the foldable iPhone — expected to price between $2,000 and $2,500 — will test whether Apple can reignite hardware innovation in a maturing smartphone market.

The AI Gap Ternus Must Close

Apple has struggled to embrace AI, with critics saying it has fallen behind rivals including OpenAI and Anthropic. The company struck a deal with OpenAI in 2024 to integrate ChatGPT into the iPhone, but the partnership soured — Apple sued OpenAI earlier this year, alleging the AI company stole trade secrets. Apple has since announced a deal with Google to use Gemini models for its own AI and a new AI-powered Siri.

Jeronimo said Apple's biggest challenge is that it doesn't control AI infrastructure the way it controls hardware and software for its core products. "Even if Apple built their own AI technology, the reality is that they still depend on someone else," he said. The risk, he added, is that Apple could become less relevant in a world where OpenAI and Anthropic lead in technology, awareness, services, and potentially hardware.

Ternus's background could help. He played a central role in Apple's shift to designing its own chips instead of relying on external suppliers like Intel — the kind of independence Apple would like to achieve in AI. His deep hardware expertise positions him to drive product innovation, though observers note he will need to address Apple's competitive position in AI and sustain growth in a maturing smartphone market.

What September 9 Means for Apple's Roadmap

The September 9 event, dubbed "Surprise and Shine," is expected to be Apple's biggest product introduction of the year. Beyond the foldable iPhone, Ternus is expected to announce a new version of Siri powered by AI. The foldable iPhone, rumored to be called the iPhone Ultra, is expected to replace the Pro Max variant and price between $2,000 and $2,500.

Jeronimo noted that the September 9 announcements were planned during Cook's tenure, and it will be 2027 before Ternus's own strategic direction becomes apparent. "I don't think we have seen anything that could indicate that Apple is behaving in a different way or is showing a different kind of strategy because Tim Cook is not in the job anymore — yet," he said.

Apple shares have risen more than 2,000 percent since Cook took over in 2011. The transition to Ternus — a deliberate choice to prioritize product design and engineering over operational or financial expertise — represents a bet that hardware innovation can drive the next phase of growth. If the foldable iPhone and AI-powered Siri deliver, Apple could reclaim momentum in a smartphone market where it faces pressure from Samsung's foldable lineup and AI-native challengers. If not, the company risks losing ground in a sector where AI capability increasingly determines device choice.

This article is for informational purposes only and does not constitute investment advice.